Latest news with #JLL
Irish Times
2 hours ago
- Business
- Irish Times
Residential construction slides by over 10% in first quarter of 2025 compared to previous year
Residential construction slumped by 10.6 per cent in the first three months of 2025 compared to the same period last year, Central Statistics Office figures on Friday show. Production in the sector was also down 4.3 per cent compared with the previous quarter. It comes as a new report from estate agents JLL says that Dublin faces a second consecutive year of declining apartment completions , with the numbers built this year expected to be 40 per cent down on the 2023 peak. The group's Dublin Living Market Report, which covers the first half of 2025, said it will take several years before apartment output increases. Completions this year will be down by 17.8 per cent on 2024 levels. Outside residential construction, the CSO data showed production volumes in building and construction more generally rose by 13.5 per cent in the first quarter compared with the same period last year. It was up 4.9 per cent on the previous quarter. READ MORE On an annual basis, volumes in the non-residential building and civil engineering sectors rose by 13.7 per cent and 35.9 per cent respectively. That helped boost overall construction production by value by 6.5 per cent on a quarterly basis and by 19 per cent on the same period last year. JLL's report said apartment completions are expected to rebound in 2026 and 2027 on the back of a 'surge' in apartment construction starts last year when developers accelerated projects to capitalise on levy waivers. Although some house building projects with lodged commencement notices did not proceed, JLL said its research suggests a large number of apartment units with lodged notices did start construction. While apartment deliveries are projected to increase over the next two years, JLL noted that the 2024 report of the Housing Commission indicates it will still fall short of meeting demand. It estimates that between 19,600 and 36,400 apartments are needed annually to satisfy housing needs. It said apartment completions will fall below this by an average of 49 per cent in 2026 and 2027. Elsewhere, JLL said Ireland's residential investment market experienced a 'sluggish start' to 2025, with just €10 million deployed across two transactions in the first quarter. However, it noted there are 'signs of modest activity' in the second quarter, fuelled by a significant deal under offer and the expected completion of Ronan Group's Spencer Place disposal to Ardstone Capital. This transaction, involving 393 apartments in Dublin 1, is valued at approximately €177 million. The outlook for living investment in Ireland is 'cautiously optimistic', JLL said, underpinned by 'strong economic fundamentals and an engaged Government attempting to attract institutional investment'. 'The Government's active pursuit of institutional investment in the living sector is a positive step toward boosting the supply of new units, especially as apartment completions are expected to decline in 2025 compared to 2024,' the group said. 'While rent reforms might require further adjustments to generate the desired large-scale investment, the current Coalition has shifted the stance away from previous governments and now recognises the significant role private investors will play in addressing the housing crisis.' The construction industry is lobbying for additional measures beyond rent reforms, such as VAT waivers for high-density developments or development levy waivers to improve project viability. 'A consensus has emerged among construction bodies, the Irish Government, and the European Commission regarding the critical need for productive investment in housing,' JLL added.
Yahoo
5 hours ago
- Business
- Yahoo
Life sciences struggles with oversupply in Q1, but upsides exist, experts say
This story was originally published on Facilities Dive. To receive daily news and insights, subscribe to our free daily Facilities Dive newsletter. After growing steadily throughout 2024, the U.S. life sciences real estate sector is experiencing turbulence in 2025 due to business uncertainty, which resulted in a sharp drop-off in demand for lab space during the first quarter, according to a report by JLL. Oversupply increased slightly year over year, with the more than 200 million square feet of U.S. lab market space needing 20 million to 25 million square feet of net absorption or supply reduction to return to market equilibrium, JLL says in its 2025 life sciences property report. 'Barring an unforeseen and substantial growth spurt of demand, the likeliest outcome of this period of oversupply is that well-built and well-located buildings will gain market share,' JLL says in the report, noting that landlords with scale and experience in the space are out-leasing their competition. 'Buildings without those aspects will face increased odds of distress in the next 12-24 months.' Although there are high-potential labs in need of updated operations and working capital to provide opportunities, the firm anticipates a supply shake-up, with many building owners unable to wait indefinitely for markets to recover, per the report. Today, smaller deals are driving market activity, making up 76% of deals closed in the first quarter, JLL said. The firm noted that reductions in tenant demand across the U.S. — influenced by macroeconomics, policy and funding uncertainties — suggest 'muted leasing volume growth' through 2025 as the sector grapples with 'a rocky decision-making environment.' JLL says sustained elevated supply has led to significant downward pressure on rents in key markets, namely Boston, the Bay Area and San Diego. Midsize markets —such as the greater Washington, D.C., area; New Jersey; and Raleigh-Durham, North Carolina — occupy a more stable middle ground, showing 'decent availability levels and moderate rent changes,' JLL says in its report. There is relative resilience in the U.S. life sciences workforce, coupled with right-sizing and life sciences tenants using their space more efficiently, according to Ian Anderson, senior director of research for life sciences at CBRE. 'It's actually helping stem some of the negative effects of oversupply of life sciences real estate we've seen over the last few years,' Anderson said on a CBRE webinar. 'Though we have a while to go to address some of the oversupply in the life sciences real estate space, we are headed in the right direction … with tenants becoming more efficient with space,' Anderson said. JLL echoed this sentiment, noting that owners of struggling buildings experiencing elevated vacancy levels have started to change uses, leading to a reduction in built lab space that could help to alleviate oversupply. The firm says that it is tracking 3.2 million square feet in the process of changing uses, with half of this due to a pivot toward or lease to a new user type, with the other half due to capital challenges. One such potential user type is AI-focused tech firms, which are experiencing significant growth and are in need of space, according to CBRE. While the flight to quality has already begun to force office occupiers to consider less-than-prime buildings, the life sciences sector still has a large supply of high-end buildings available in top markets like San Francisco, according to Mary Hines, vice chair of life sciences in the San Francisco Bay Area at CBRE. 'What we saw during the pandemic was that developers spent a lot of money building out Class A life science buildings, a number of those are still available and in shell condition,' Hines said. 'The ones located in the right locations are going to need to catch the eye of these fast-growing AI companies that need space.' In addition, both life sciences and AI companies share a growing need for reliable power. 'Given the long lead times in the Bay Area for power, and how difficult it is to get if your building doesn't have it, that is creating a lot of demand for buildings that have power in place,' Hines said. 'So I do predict that we're going to likely see a lot of these Class A life science projects get leased by AI companies.' In addition, there are opportunities for tenants to relocate manufacturing functions — those that are normally pushed to tertiary or secondary markets due to the high cost of building — to be closer to headquarters, which are usually situated in the core markets. We've seen the softening of rents, and landlords have been more competitive in actually giving more tenant improvement dollars,' Hines said. 'So that creates the potential for these companies to locate their manufacturing nearby.' Recommended Reading AI set to spur changes in life sciences facility needs Sign in to access your portfolio
Straits Times
12 hours ago
- Business
- Straits Times
Evergrande tycoon's ex-wife spent millions on luxury homes after property giant defaulted on loans
Evergrande, once China's largest property developer, was forced into liquidation in 2024 with US$300 billion in debt. PHOTO: BLOOMBERG HONG KONG – The ex-wife of China Evergrande Group's chairman spent millions on luxury apartments in London, nine months after the country's once largest property developer defaulted on its loans. While a court document in January unveiled her ownership of 33 units at the high-end residential development Thames City, it didn't include the timing of the purchase. The properties worth £49.8 million (S$86.3 million) were acquired in September 2022, according to data compiled by Bloomberg News based on UK land registry filings. That's almost a year after Chinese authorities asked Evergrande chairman Hui Ka Yan to pay debt with his personal wealth. Ding Yumei holds the homes through five British Virgin Islands companies. She has hired Jones Lang LaSalle (JLL) as a letting and management agent, according to a UK court filing in January. The 68-year-old is living in one of the most expensive homes she purchased, worth £5.4 million, with two of her children and two grandchildren, according to court filings. She was no longer listed as a spouse of Mr Hui in Evergrande's filing in August 2023, while it's unclear when the two divorced. The properties add to a list of more than US$350 million global assets that Ms Ding amassed, including a record-breaking mansion at the heart of London in 2020 and other ones in Vancouver. It underscores the challenges liquidators face in gaining full view of the assets held by Mr Hui and his confidantes, and the obstacles to asserting control across multiple jurisdictions. Once Asia's second richest, Mr Hui and Evergrande exemplify China's real estate boom and bust. His sprawling empire was forced into liquidation in 2024 with US$300 billion in debt, as China's property meltdown continued into a fourth year. In 2024, JLL sought permission from the Business and Property Courts of England and Wales to continue managing Ms Ding's properties, following an injunction issued against her – a request that was granted by a UK judge. The move came after courts in both Hong Kong and London imposed worldwide asset-freeze injunctions on Ms Ding in July, part of a broader effort to recover US$6 billion from her, Mr Hui, and former Evergrande executives. Ms Ding has been told to provide detailed asset disclosure to liquidators in Hong Kong, yet she has delayed the process by applying for confidentiality summons and asking for other technical clarifications. Ms Ding's representatives have argued that she didn't hold a management role in the company and wasn't involved in operations. Ms Ding's representatives didn't respond to requests for comment. Mr Hui couldn't be located, as he was taken away by Chinese police in 2023 and put under control. The monthly rental for the Thames City apartments go from about £3,800 for a one-bedroom flat to more than £34,000 for a five-bedroom penthouse, according to listings from property platform Zoopla. The Thames City project was co-developed by Guangzhou R&F Properties and C C Land Holdings, run by Cheung Chung Kiu, a poker-playing friend of Mr Hui. In April 2022, R&F sold a 50 per cent stake in the project to a private vehicle wholly owned by Mr Cheung at a loss of HK$1.84 billion (S$302 million). Later in 2022, R&F's co-founder Zhang Li chose to stay confined in one of the project's penthouses when he was on bail after facing bribery charges from the US. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Arabian Post
a day ago
- Business
- Arabian Post
Cushman & Wakefield Greater China Secures Three Five‑Star Accolades
Cushman & Wakefield Greater China has been honoured with three five‑star awards at the 2025 Asia Pacific Property Awards, recognising its excellence in commercial real estate services across the region. The firm also received an additional 'Award Winner' designation, strengthening its regional leadership credentials. Judged by an expert panel comprising property professionals, these awards are regarded as one of the industry's most prestigious marks of quality, celebrating superior standards in real estate strategy, management and client service. The honoured categories include high‑profile segments such as office leasing, property consultancy and sustainable urban development—areas where the firm demonstrated remarkable performance in Greater China. Stakeholders report that its holistic approach, blending quantitative analytics with qualitative client engagement, distinguished the company in these assessments. ADVERTISEMENT The Asia Pacific Property Awards form part of the broader International Property Awards framework, which includes 2025 regional recognition events held across Asia Pacific. Awardees must first succeed at a national level before being advanced to regional contention. Judges evaluate entries by following strict criteria that include innovation, design, execution, and a clear demonstration of sustainable development goals. Cushman & Wakefield Greater China's award-winning projects drew favourable attention across multiple independent assessments this year. One of its flagship initiatives showcased a redevelopment strategy that revitalised a class‑A office building in Shanghai's Puxi district, featuring tenant‑centric amenities and energy‑efficiency retrofits surpassing local regulatory standards. Observers lauded the project as 'a benchmark in adaptive reuse and tenant wellbeing.' Several market analysts note that this recognition aligns with Cushman & Wakefield's recent push into sustainability consultancy within China's tier‑1 cities. Data from real estate advisory firm JLL indicates demand for green certifications such as LEED and China's Three-Star rating system has grown by over 20 per cent in prime office space leasing inquiries in Shanghai and Beijing over the past year. Cushman & Wakefield has positioned itself to capitalise on this trend through integrated valuation and ESG advisory services. The firm's success reflects broader shifts in Greater China's commercial real estate landscape. As occupier priorities pivot toward hybrid work models and employee wellness, landlords are increasingly investing in flexible spaces, enhanced air quality systems and digital infrastructure—areas where Cushman & Wakefield's consulting practice claims to offer a competitive edge. Industry insiders credit the firm's cross-border research capabilities and its network of regional specialists for facilitating this adaptability. Leadership within the company emphasises the role of strategic partnerships in bolstering service quality. According to senior executives, collaborations with local tech providers have expanded the firm's data analytics offerings, enabling real‑time occupancy tracking and predictive maintenance solutions. These capabilities, they say, underpin their award‑winning performance across multiple project categories. In addition to commercial leasing and consultancy, the firm also asserted itself in urban planning and precinct‑level developments. One notable project in Guangzhou integrated smart‑city planning elements—such as IoT‑enabled energy systems and occupant behavioural analytics—to optimise building usage and sustainability outcomes. Judges reportedly commended this project for its forward‑looking design and measurable impact on environmental performance. Competitors in the same categories included both global real estate consultancies and prominent domestic players. While these firms have likewise embraced ESG frameworks and smart building solutions, Cushman & Wakefield's depth of data‑driven insight and regional footprint reportedly gave it a distinct advantage in the judges' evaluations. The multiple awards underscore a trajectory in which the firm continues to harness innovation, sustainability and client experience as pillars of growth. Cushman & Wakefield Greater China plans to replicate its award‑winning models across emerging urban centres, with an emphasis on Tier‑2 cities like Chengdu and Wuhan—where demand for high‑quality commercial assets is rising amid urbanisation and regional economic diversification.
Mint
4 days ago
- Business
- Mint
Office space demand gets a push from domestic firms
Domestic companies are taking more space in office leasing. They leased a record 31.9 million square feet (msf) area in 2024. The traction continued in the first quarter of 2025 (Q1CY25) with 8.8 msf already leased, JLL India said in a recent report. This has translated into better absorption of available Grade-A office units and higher occupancies. On average, since 2022, domestic occupiers account for a 46% share of gross leasing versus 35% pre-pandemic (2017-2019), as per JLL. The property consultant added that BFSI firms have more than doubled their space requirements, with average deal sizes jumping from 10,500-11,500 sq. ft in 2017-2019 to 24,000-25,000 sq. ft from 2022 to Q1CY25, representing a staggering 125-130% rise. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but excluding term renewals and deals in the discussion stage. Other sectors driving growth include domestic pharmaceutical; biotech; engineering, procurement, and construction (EPC); aviation; and OEM. Also Read: India office Reits report higher FY25 income, leasing on strong GCC demand SEZ demand What also continues to aid office space occupancies is conversion of special economic zone (SEZ) spaces into non-SEZ spaces. This is working in favour of listed REITs (real estate investment trusts), which are estimated to account for over 10% of the total office stock across India's top eight cities. To beat the leasing slowdown in SEZ, listed REITs have been de-notifying their SEZ spaces, following the relief from the government in December 2023. Embassy Office Parks REIT has already denotified around 6.4msf SEZ space so far, of which 75% is leased out. It is in the process of denotifying another 1.2msf. Mindspace Business Park REIT has denotified 2.2msf SEZ space out of which around 1.2msf is leased. Brookfield India Real Estate Trust is looking to convert around 2msf of SEZ space to non-SEZ, of which it has already completed conversion of 1.5msf to date and leased around 0.8msf. The managements of listed REITs are confident that occupancies would trend up from here. Embassy expects portfolio occupancy to improve to 90–91% from 87% in FY25. Mindspace anticipates committed occupancy to reach 95% by FY26-end from 93% currently. Brookfield management guided for 92–94% occupancy at FY26-end from 88% in FY25. Rising occupancies should give key earnings parameters of listed REITs a boost. These REITs have given higher returns than the benchmark Nifty50 index in the past one year in anticipation of higher occupancies. 'Indian-listed office REITs delivered their first clean year of distribution per unit (DPU) growth in FY25, registering 8-15% growth and we expect 8-13% CAGR growth in DPU from FY25-27 as well," said a report by HSBC Securities and Capital Markets (India). DPU is the total amount of income (like rental income or dividends) that a REIT distributes to its investors for each unit they hold. It is a crucial metric to gauge the income potential of a REIT investment. Also Read: Centre notifies SEZ reforms to boost semiconductor, electronics manufacturing To benefit from demand momentum, these REITs have accelerated their acquisition pipelines and capital expenditure plans, leading to some leverage build-up. While rentals in India's commercial realty sector are improving, the pace is slow. Sequentially, average rental values across all the major office markets in India rose marginally by 0.1%-6.5% in Q1CY25, according to JLL. With new supply coming in, trends in rentals need to be monitored. Meanwhile, global capability centers (GCCs) continue to occupy a lion's share of Grade-A office space demand in India. GCCs are typically companies of foreign origin that set up their back-office operations and R&D activities in India. Worries of a recession in the US amid ongoing tariff tensions can dampen office demand, as US-based GCCs account for a significant share of total GCC leasing in India.
